The company faces market risk from interest rates, foreign exchange, stock prices, and commodity prices, managed with derivative instruments. Impairment of goodwill and other long-lived assets is a risk, as evidenced by recent impairment charges related to the VMS business. Economic downturns, competition, and consumer demand fluctuations pose further risks. Potential losses from pending legal actions, including product liability and consumer class actions, are also a concern.
Financial Upside
Increased net sales in the third quarter of 2024, driven by product volume and pricing/mix improvements, suggest potential for continued growth. Favorable tariff rulings and acquisitions (Graphico) contribute to positive sales trends. Higher interest income and lower interest expense also present a positive outlook. Strong cash flow from operations supports liquidity and potential future acquisitions.
